Pacific Northwest Market Review - Third Quarter 2017

PACIFIC NORTHWEST Q3 2017 MARKET REPORT www.vdbluxury.com

Puget Sound Southwest Washington Portland Oregon

VDB Luxury : Advantage in the Marketplace Mark von der Burg is highly regarded as one of the most qualified experts in residential real estate in the Pacific Northwest. For more than twenty-eight years, Mark has built his reputation representing Luxury Estates, Urban Homes, and Waterfront Properties. With sales over $110,000,000 in 2016, he is once again in the top 0.5% of agents nationwide, the second leading Realtor in the Northwest, and Coldwell Banker Bain’s #1 Realtor.

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As the founder of VDB Luxury, Mark has assembled an extremely capable team of talented professionals who work tirelessly providing exceptional client services. Skilled in their field, they constantly review, adjust, and redevelop various aspects of the business to get the best results. Specialties include Photography, Cinematography, Creative Writing, Staging, Graphic Design, Marketing, Social Media, International Business, Listing/ Transaction Management, and Escrow. The team’s success is attributed to expertise, powerful resources and a well-executed, structured plan. Performing from a position of strength, VDB Luxury continues to be Coldwell Banker Bain’s #1 Team year after year.

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ABOUT COLDWELL BANKER BAIN

Coldwell Banker Bain is the 17th-largest real estate company in the country, helping people buy and sell homes in the Pacific Northwest since 1972. With 1000+ brokers in 31 offices throughout Washington and Oregon, the company provides the full spectrum of services to buyers and sellers, with special expertise in the luxury realm. Additionally, the company has once again earned the national Coldwell Banker Chairman’s Circle designation for outstanding performance in volume for 2016, ranking as a No. 1 network

affiliate out of 3,000 offices in 49 countries. The company operates as Coldwell Banker Bain in Western Washington and in the Portland/ Vancouver metropolitan area, providing services in property management, commercial real estate and real estate investment, and relocation management. Coldwell Banker Bain consistently ranks among the Top 20 Real Estate Companies in the nation as cited by Real Trends and RIS Media’s Real Estate. For more information, visit: www.coldwellbankerbain.com

2017 THIRD QUARTER NUMBERS

Seattle, Wash. (Oct. 19, 2017) – Coldwell Banker Bain, a leading Pacific Northwest real estate brokerage, releases its third quarter market report providing a variety of statistics for the sale of homes in neighborhoods and counties throughout the Puget Sound region, as well as for segments including luxury and condos. The third quarter report reflects activity between July 1, 2017 and Sept. 30, 2017.* Reflecting on the third quarter numbers and feedback from brokers, Mike Grady, CB Bain president and COO, pointed out interesting developments: For the third quarter of 2017, the average sales price for single-family homes in the Seattle metro market approached $1 million and the Eastside exceeded that million-dollar mark. Within those areas are neighborhoods with even more staggering average sale prices - Mercer Island was at $1.867 million and both Madison Park and Bellevue were at $1.330 million.

West Seattle is down to almost half the number of homes for sale this year compared to the same time last year (47.5%), NE Seattle is down by almost 36%, and the Ballard/ Greenlake area’s inventory is nearly 30% smaller this year.

Interestingly, these areas with high reductions of inventory are also neighborhoods with average sales prices below the area average, which suggests that buyers are seeking out the

more affordable locations in the metro market, but as a result the availability of homes for sale is shrinking in those “more affordable” locations at an even faster pace.

The markets to the north and south of the Seattle/Eastside in the Puget Sound region have dramatically lower average sales prices, yet their inventory is also shrinking quickly, which foretells continued escalating prices in those markets. North Tacoma/University Place/Lakewood has an average sales price of $372,000, but its inventory decreased by nearly 21% compared to last year and the average sales price in Marysville is $360,000, but the inventory there shrunk by almost 24%.

The condo market in the region is also an interesting study of comparisons. While the average sales price for condos hovers around $500,000 for the Seattle metro ($508,000) and Eastside markets ($487,000), condos to the south (So. King, Pierce, Kitsap = $245,000) are about half that price and to the north (Snohomish/Skagit/Whatcom) a bit more than half-price at $321,000. However, the south Sound inventory is disappearing quickly (31% smaller than last year), while inventories to the north are about equal to last year. So, watch out South Sound... predicted higher prices are coming!

— Mike Grady, CB Bain President and COO

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2017

EASTSIDE AREA

2017 THIRD QUARTER MARKET REPORT

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

Bellevue Bothell Duvall/Carnation Kirkland Issaquah/Sammamish Mercer Island Redmond Woodinville

Average Sold Price (Nearest $000) Total Eastside Area (SF)

$1,330,000

Bellevue (SF) Bothell (SF)

$645,000

Duvall | Carnation (SF)

$618,000

Kirkland (SF)

$982,000

Issaquah | Sammamish (SF)

$992,000

$1,867,000

Mercer Island (SF)

The third quarter saw a seasonal adjustment to the pace and volume of buyer activity, but overall Eastside sales results from July to September were exceptional when measured against any other year.”

$953,000

Redmond (SF) Woodinville (SF)

“As the statistics in this report show, demand for Eastside homes remained exceptionally strong throughout the third quarter. The average sold price for an Eastside single family home was $1,028,000, up 16.3% over the same period last year. The average condo price increased by an impressive 20%.

The list-to-sold price ratio across all Eastside communities was 102.8%, meaning the average home has sold for 2.8% above its asking price. While there were fewer multiple-offer situations and more price reductions than in the first half of the year, the list-to-sold statistic is proof that there is still competition among buyers for strategically priced homes in good condition.

$1,028,000

$852,000

Area Condos $487,000 Area Waterfront (SF)

$2,004,000

— Thadine Bak, Principal Managing Broker of CB Bain’s Bellevue & Madison Park office

Area Luxury ($2+M | SF + Condo)

$3,281,000

$0k

$500k

$1000k

$1500k

$2000k

$2500k

$3000k

$3500k

Number of Sales Closed

1000 800

2662

892

Total Eastside Sales Closed

600 400

455

374

200 0

23

601

563 119

92

281 145

166

Bellevue (SF)

Bothell (SF)

Duvall / Carnation (SF)

Kirkland (SF)

Issaquah / Sammamish (SF)

Mercer Island (SF)

Redmond (SF)

Woodinville (SF)

Area Condos Only

Area Waterfront (SF)

Area Luxury ($2+M | SF+C)

21

17

30

12

19

42

16

21

17

46

61

167

Average Days on Market Current Inventory in Units

Total Eastside Area

1140

157

181

58

128

207

64

92

76

211

133

225

-11.1%

-21.5%

-3.7%

-4.9%

-8.6%

-3.3%

-17.9%

-16.4%

-18.3%

-23.0%

-11.3%

-7.0%

Change from 2016

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2017

SEATTLE AREA Ballard | Green Lake Capitol Hill Madison Park Magnolia NE Seattle South Lake Union | Queen Anne Seattle Central West Seattle

2017 THIRD QUARTER MARKET REPORT

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY Average Sold Price (Nearest $000) $929,000

Seattle Area (SF)

$857,000

Ballard | Green Lake (SF)

$1,193,000

Capitol Hill (SF)

$1,330,000

Madison Park (SF)

$1,024,000

Magnolia (SF)

$834,000

NE Seattle (SF)

$861,000

Seattle Central (SF)

$1,019,000

So. Lake Union | Queen Anne (SF)

$798,000

West Seattle (SF)

“Although Seattle’s inventory comparisons to last year show an overall decrease we are seeing improvements as more listings come to market compared to previous months this year and the days on market have increased slightly. For the first time, this year the available supply of inventory was at and over the one-month mark in Seattle generally while our selected areas had a blistering 15 days on market for both residential and condos. There was a notable number of listings past their offer review date and an increase in price reductions; the overall number of buyers participating in multiple offers has decreased.

The average price for single family homes in our selected areas of Seattle during the third quarter was above $900,000 and has been on a steady increase all year.

In the Seattle luxury market areas of Queen Anne, Magnolia, Madison Park and Capitol Hill, the average sales price has moved past the $1 million mark in the third quarter with no sign of a slowdown.“

$508,000

Area Condos

$1,666,000

Area Waterfront (SF)

— John Deely Principal Managing Broker of CB Bain’s Lake Union office

$2,852,000

Area Luxury ($2+M | SF + Condo)

$0K

$500K

$1000K

$1500K

$2000K

$2500K

Number of Sales Closed

600

1617

500 400

528

327

200 90

100

15

Total Seattle Sales Closed

474

300

0

$3000K

142

230

40

118

117

24

41

Ballard / Green Lake (SF)

Capitol Hill (SF)

Madison Park (SF)

Magnolia (SF)

NE Seattle (SF)

Seattle Central (SF)

S. Lake Union / Queen Anne (SF)

West Seattle (SF)

Area Condos Only

Area Waterfront (SF)

Area Luxury ($2+M | SF+C)

11

26

22

16

13

13

24

17

15

44

96

85

Average Days on Market Current Inventory in Units

Total Seattle Area

426

73

-21.3%

-29.8%

26

28

47

-30.0% 4.0%

66

78

42

31

142

26

-35.9%

-17.9%

-20.8%

-47.5%

-19.3%

-10.3%

27.0%

21.4% Change from 2016

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2017

SOUTH SOUND AREA Gig Harbor | Key Peninsula North Tacoma | Lakewood | University Place Puyallup | Graham SE King County SW King County Bainbridge Island Silverdale

2017 THIRD QUARTER MARKET REPORT

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY Average Sold Price (Nearest $000) $391,000

South King, Pierce & Kitsap Areas (SF)

$504,000

Gig Harbor/Key Peninsula (SF) North Tacoma | University Place Lakewood (SF)

$372,000 $335,000

Puyallup | Graham (SF)

$460,000

SE King County (SF)

$430,000

SW King County (SF)

$1,039,000

Bainbridge Island (SF)

$375,000

SIlverdale (SF) So. King, Pierce & Kitsap County Condos

$245,000

So. King & Pierce County Waterfront (SF)

$730,000

So. King, Pierce & Kitsap County Luxury ($1+M | SF+Condo)

$1,381,000

$0K

$300K

$600K

$900K

$1200K

$1500K

Number of Sales Closed

2000

8939

1500

South King, Pierce & Kitsap Area Sales Closed

1666

1000 977

1073

1060

965

500 458

0

27

145

102

353

147

Gig Harbor / Key Peninsula (SF)

N. Tacoma / University Place / Lakewood (SF)

Puyallup / Graham (SF)

SE King County (SF)

SW King County (SF)

Bainbridge Island (SF)

Silverdale (SF)

So. King, Pierce & Kitsap County Condos

So. King, Pierce & Kitsap County Waterfront (SF)

So. King, Pierce & Kitsap County Luxury ($1+M | SF+C)

43

24

28

22

20

44

37

23

60

59

291

397

302

-31.0%

-11.2%

Average Days on Market Current Inventory in Units

Total South King, Pierce & Kitsap Areas

4557

399

400

515

784

538

95

-14.1%

-15.5%

-20.5%

-10.0%

-21.0%

-13.1%

-5.9%

67 15.5%

7.1%

Change from 2016

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2017

NORTH SOUND AREA (Snohomish, Skagit, Whatcom) Anacortes Bellingham Edmonds Everett Lynnwood Marysville

2017 THIRD QUARTER MARKET REPORT

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY Average Sold Price (Nearest $000) $454,000

North Sound Area (SF)

$472,000

Anacortes (SF)

$446,000

Bellingham (SF)

$675,000

Edmonds (SF)

$400,000

Everett (SF)

$504,000

Lynnwood (SF)

$360,000

Marysville (SF)

$321,000

3-County Area Condos 3-County Area Waterfront (SF)

$698,000

3-County Area Luxury ($1+M | SF+C)

$1,302,000

$0K 800 700 600 500 400 300 200 100 0

22

$300K

$600K

$900K

$1200K

$1500K

Number of Sales Closed

2099 628

Total North Sound Sales Closed

629

415 337

346 79

226

147

49

Anacortes (SF)

Bellingham (SF)

Edmonds (SF)

Everett (SF)

Lynnwood (SF)

Marysville (SF)

3-County Area Condos

3-County Area Waterfront (SF)

3-County Area Luxury ($1+M | SF+C)

48

26

21

17

16

20

19

54

54

246

86

92

Average Days on Market Current Inventory in Units

Total North Sound Area

1103

128

-1.5%

-3.0%

346 20.6%

89

243

-23.3%

-5.4%

125

172 -23.9%

22.5%

-12.2% 2.5%

13.6%

Change from 2016

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2017

PUGET SOUND AREA COUNTIES Island King Kitsap Pierce Skagit Snohomish Whatcom

2017 THIRD QUARTER MARKET REPORT

SINGLE FAMILY (SF)

Average Sold Price (Nearest $000) $420,000

Island (SF) King (SF)

$765,000

Kitsap (SF)

$412,000

Pierce (SF)

$351,000

Skagit (SF)

$349,000

Snohomish (SF)

$487,000 $380,000

Whatcom (SF)

$0K

$100K

$200K

$300K

$400K

$500K

$600K

$700K

$800K

Number of Sales Closed

10000 8000 8113

6000 4000 2000 0

1495

546

4705

633

3710

934

Island (SF)

King (SF)

Kitsap (SF)

Pierce (SF)

Skagit (SF)

Snohomish (SF)

Whatcom (SF)

49

19

33

28

33

23

43

809

Average Days on Market Current Inventory in Units 438

3117

741

2492

493

1583

-13.9%

-16.7%

-19.7%

-9.9%

-8.7%

-14.4% 1.6%

Change from 2016

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2017

SOUTHWEST WASHINGTON East Clark County North Clark County West Clark County

2017 THIRD QUARTER MARKET REPORT

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY Average Sold Price $358,000

East Clark County (SF)

North Clark County (SF)

$425,000

$376,000

West Clark County (SF)

Area Condos

(Nearest $000)

$237,000

$1,361,000

Area Luxury ($1+M | SF+C)

$0K 800 700 600 500 400 300 200 100 0

$300K

$600K

$900K

$1200K

$1500K

Number of Sales Closed

660 552 391 175

29

East Clark County (SF)

North Clark County (SF)

West Clark County (SF)

Area Condos

Area Luxury ($1+M | SF+C)

27

35

29

35

106

71

71

34.0%

7.6%

Average Days on Market Current Inventory in Units 349 -9.8%

350 28.7%

325 -11.7% Change from 2016

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2017

SOUTHWEST WASHINGTON COUNTIES Clark County Cowlitz County

2017 THIRD QUARTER MARKET REPORT

SINGLE FAMILY (SF)

Average Sold Price (Nearest $000)

Clark County (SF)

$397,000

Cowlitz County (SF)

$238,000

$0K

$50K

$100K

$150K

$200K

$250K

$300K

$350K

$400K

Number of Sales Closed

2500 2000 1500 1000

2075

416

500 0 Clark County (SF)

Cowlitz County (SF)

30

33

Average Days on Market Current Inventory in Units 1400

294

-4.6%

-1.0% Change over ямБrst quarter 2017

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2017

PORTLAND OREGON REGION

Portland, Oregon (Oct. 19, 2017) – Coldwell Banker Bain, a leading Northwest real estate brokerage, releases its third quarter market report providing a variety of statistics for the sale of homes in neighborhoods and counties in SW Washington and Oregon, as well as for segments including luxury and condos. This third quarter report reflects activity between July 1, 2017 and Sept. 30, 2017.*

Reflecting on the third quarter numbers, David Sly, Regional Area Manager for CB Bain and Principal Managing Broker of its Lake Oswego and Portland Uptown offices, pointed to interesting data trends: Sales prices in the tri-county Portland market average in the mid to high $400,000 range and across the river into Vancouver and Clark County, average sales prices are still under $400,000.

Interestingly, the inventory of available homes for sale is not experiencing the same shrinkage as in the Puget Sound region. In fact, inventories in this region are, for the most part, equal to or greater than last year’s inventory. In some areas such as

North Portland and North Clark County, there are 28% more homes for sale this year compared to last year.

In Lake Oswego, however, with an average sales price at $796,000 this quarter, it still remains an elusive market for many to enter and is why its average days on market is higher than the rest of the tri-county area.”

— David Sly, Principal Managing Broker of CB Bain’s Portland Uptown and Lake Oswego offices

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2017

PORTLAND OREGON REGION

2017 THIRD QUARTER MARKET REPORT

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

Beaverton | Aloha Lake Oswego | West Linn Milwaukie | Happy Valley North Portland Northeast Portland Southeast Portland West Portland | Raleigh Hills

Average Sold Price (Nearest $000) $421,000

North Portland (SF)

$490,000

Northeast Portland (SF)

$407,000

Southeast Portland (SF)

$647,000

West Portland | Raleigh Hills (SF) Lake Oswego | West Linn (SF)

$796,000

Milwaukie | Gladstone | Happy Valley (SF)

$439,000

Beaverton | Aloha (SF)

$420,000 $324,000

Portland Metro (Tri-County) Area Condos Portland Metro Area Luxury ($1+M | SF+C)

$1,466,000

$0K

$300K

800

$1200K

923

600

$1500K

899

677

627

400

0

$900K

Number of Sales Closed

1000

200

$600K

509

556

379 274

194

North Portland (SF)

Northeast Portland (SF)

Southeast Portland (SF)

West Portland / Raleigh Hills (SF)

Lake Oswego / West Linn (SF)

Milwaukie / Gladstone / Happy Valley (SF)

Beaverton / Aloha (SF)

Portland Metro (Tri-County) Area Condos

Portland Metro Area Luxury ($1+M | SF+C)

19

22

24

29

32

30

21

22

45

Average Days on Market Current Inventory in Units 176

397

564

474

40.8%

17.8%

11.0%

2.2%

409

504

307

588

512

18.2%

18.3%

12.0%

28.4%

17.4%

Change from 2016

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2017

OREGON REGION COUNTIES Clackamas Multnomah Yamhill Washington

2017 THIRD QUARTER MARKET REPORT

SINGLE FAMILY

Average Sold Price

(Nearest $000)

$513,000

Clackamas County (SF)

Multnomah County (SF)

$463,000

Washington County (SF)

$461,000

$368,000

Yamhill County (SF)

$0K

$100K

$200K

$300K

$400K

$500K

$600K

Number of Sales Closed

3000 2500 2000

2657

1500 1000

2075 1702

407

500 0

Clackamas County (SF)

Multnomah County (SF)

Washington County (SF)

Yamhill County (SF)

30

24

25

39

Average Days on Market Current Inventory in Units 1390

1822

1281

3.7%

13.0%

10.6%

320 -24.5%

Change over ďŹ rst quarter 2017

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2017

THIRD QUARTER MARKET REPORT - 2017

*Information and statistics derived

by CB Bain from the Northwest Multiple Listing Service (NWMLS) each quarter. Statistics not compiled or published by the NWMLS.